How do you calculate production efficiency?
10 Answers Answer
Efficiency of measure of resource utilization ratio. In simple terms it is Outputs/Inputs.
It can be any resource - Time, Material, Manpower, Machine, etc.
Depending the resource you are measuring and unit you are using, you should be able to measure the efficiency. In production also, you should be able to measure -
Good product / Mateial used (Units can be Kgs, Nos, etc)
Equipment utilization = No of hours produced / No of hours available
OEE is a parameter, which helps production department to understand overall effectiveness - This covers Quality, Maintenance, Production parameters and gives one index.
This can be measured for single machine as well as for the overall plant.
Production efficiency=( O/P)/ Machine capacity
Production efficiency=( Production hours/ Available hours)xmachine capacity
Production efficiency= Qty produced/ planned qty
Production efficiency= Machine utilization /machine capacity
Actually I was looking for an answer which relates the production downtime to the production efficiency. The production down time is caused by production personnel & does not include technical down time, it includes start up, shut down, change of product size or type on a production line or machine, etc...
In order to calculate a production line efficiency you need to obtain data of the number of pieces and the number of hours worked. In addition, you will also need to obtain the piece/min data by conducting a time study at the front and end of line (ensure that they are equal). Following the collection of this data you can approach it in this manner: Number of pieces total / number of minutes of production= Avg. pieces per min Now... take your (Avg pieces per min/actual piece per min count) x100= efficiency percentage
If normal production capacity (Standard) of an automatic machine is100 units per hour while it produces80 units per hour in acutal. The production efficiency of the machine is80%.
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